EMPLOYMENT AGREEMENT LOAN OFFICER

Transcription

1 EMPLOYMENT AGREEMENT LOAN OFFICER The parties to this Loan Officer Employment Agreement are American Financial Network, Inc., hereinafter referred to as AFN or COMPANY, and, hereafter referred to as EMPLOYEE. EMPLOYEE will be licensed under the agency listed in Addendum B and assigned to the branch listed in Addendum B. This agreement supersedes any and all other agreements, either oral or in writing, between the parties and contains all of the covenants and agreements between the parties in any manner whatsoever. The parties agree to the following: ARTICLE I - SCOPE OF EMPLOYMENT I. The EMPLOYEE will be a full time employee of AFN and will originate real estate loans for AFN. The EMPLOYEE as such, WILL NOT be involved in any other real estate related activity including, but not limited to: Selling real estate. Originating real estate loans with another organization. I The EMPLOYEE will submit all advertising to AFN for approval prior to placing ads. AFN will not be liable to the EMPLOYEE for any expenses incurred by him/her or for any of his/her acts and the EMPLOYEE will have no authority to bind AFN by promise or representation. The EMPLOYEE has no authority to make commitments, approve credit, or otherwise bind AFN. Except as expressly provided herein, it is specifically understood and agreed that EMPLOYEE will have no express, apparent, or implied authority to act on behalf of or to bind AFN, with respect to any contract, instrument, form or agreement with the exception of HUD form A and VA form a (HUD/VA Addendum to Uniform Residential Loan Application). The EMPLOYEE will place any existing or future Licenses issued to him/her with AFN in accordance with all applicable State or Federal Regulations. ARTICLE II - EMPLOYMENT AND TERMINATION I. Employment with AFN is considered to be at will with termination by either AFN or the EMPLOYEE allowed at any time for any reason. If the EMPLOYEE terminates their employment or is terminated by AFN, AFN will pay the EMPLOYEE for all loans that close within 30 days of termination. AFN has the right to offset for any monies due and payable. ARTICLE III - COMPENSATION I. AFN agrees to pay and the EMPLOYEE agrees to accept compensation as set forth in Addendum A. ARTICLE IV - AUTOMOBILE I. If the duties performed by the EMPLOYEE require the regular use of an automobile, the EMPLOYEE will comply with state requirements regarding licensing and insurance. ARTICLE V - FIDUCIARY RESPONSIBILITY I. Although most laws don t recognize the lender-client relationship as a fiduciary one, EMPLOYEE will uphold a strict responsibility to their clients to act fiduciarily. Page 1 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

2 ARTICLE VI - DISPUTE RESOLUTIONS I. Mediation. EMPLOYEE and COMPANY agree to mediate any dispute or claim arising between them out of this Agreement or any resulting transaction, before resorting to arbitration or court action. Mediation fees, if any, shall be divided equally among the parties involved. If any party commences an action based on a dispute or claim to which this paragraph applies, without first attempting to resolve the matter through mediation, then that party shall not be entitled to recover attorney s fees, even if they would otherwise be available to that party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION OF DISPUTES PROVISION IS INITIALED. Arbitration of Disputes. (a) All claims, disputes, controversies, or disagreements of any kind whatsoever ("claims"), including any claim arising out of or in connection with EMPLOYEE'S employment or the termination of EMPLOYEE'S employment, that may arise between EMPLOYEE and the COMPANY, including any claims that may arise between EMPLOYEE and the COMPANY'S officers, directors, employees, or agents in their capacity as such, which is not settled through mediation, shall be submitted to final and binding arbitration. The arbitrator shall be a retired judge or justice, or an attorney with at least five (5) years of real estate law experience, unless the parties mutually agree to a different arbitrator, who shall render an award in accordance with Substantive California Law. In all other respects, the arbitration shall be conducted in accordance with Part III, Title Nine, of the California Code of Civil Procedure. Judgment upon the reward of the arbitrator may be entered in any court having jurisdiction. The parties shall have the right to discovery in accordance with Code of Civil Procedure (b) Claims covered by this arbitration provision include, but are not limited to the following: (1) alleged violations of federal, state, or local constitutions, statutes, regulations, or ordinances, including, but not limited to, anti-discrimination and harassment laws; (2) allegations of a breach of a contractual obligation; and (3) alleged violations of public policy. (c) The following are expressly excluded from this arbitration provision and are not covered by this Agreement: (1) claims related to workers' compensation or unemployment insurance; (2) administrative claims filed with government agencies such as the Equal Employment Opportunity Commission (EEOC), Department of Fair Employment and Housing (DFEH), or the National Labor Relations Board (NLRB); (3) any matter which is within the jurisdiction of a probate, small claims or bankruptcy court; (4) an action for bodily injury or wrongful death; and (5) claims that are expressly excluded by statute or are expressly required to be arbitrated under a different procedure required by the COMPANY'S employee benefit plans. The filing of a court action to enable the recording of a notice of pending action for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a violation of the Mediation and Arbitration provisions. (d) In consideration for and as a material condition of Employee's employment with the COMPANY, EMPLOYEE agrees that final and binding arbitration is the exclusive means for resolving the claims outlined in this Agreement. This Agreement is a waiver of all rights EMPLOYEE may have to a civil court action on any dispute outlined by this Agreement. Accordingly, only an arbitrator, not a judge or jury, will decide the dispute, although the arbitrator has the authority to award any type of relief that could otherwise be awarded by a judge or jury. NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE ARBITRATION OF DISPUTES PROVISION DECIDED BY NEUTRAL ARBITRATION AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR BY JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE ARBITRATION OF DISPUTES PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. I/WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE ARBITRATION OF DISPUTES PROVISIONS PROVISION TO NEUTRAL ARBITRATION. EMPLOYEE COMPANY Page 2 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

3 ANTI-MONEY LAUNDERING I. AFN has implemented an Anti-Money Laundering Policy (the Policy ) in accordance with the Bank Secrecy Act and other related policies and underlying laws and regulations. The Policy requirements include, but are not limited to, reasonable efforts be made to determine a customer s identity; the performance of adequate due diligence; the maintenance of high ethical standards to avoid suspect transactions; and if necessary the cooperation with law enforcement agencies, subject to customer confidentiality constraints. AFN requires that its own organization, its EMPLOYEE and its third party vendors comply with all requirements of the Policy, the Bank Secrecy Act, Antimoney Laundering regulations and Suspicious Activity Reporting requirements as they exist and apply specifically to Non-bank Residential Mortgage Lenders or Originators (RMLO), or from time to time may be amended. EMPLOYEE represents to AFN that EMPLOYEE is fully familiar with the Policy and the underlying laws and regulations and understands that AFN is relying on such representation of EMPLOYEE in agreeing to employ EMPLOYEE. ARTICLE VII - EMPLOYMENT AND DUTIES I. During the Term of this Agreement, EMPLOYEE shall serve as a loan consultant for COMPANY, and perform such duties as may be assigned by his or her supervisor. EMPLOYEE acknowledges that he or she may perform these duties in a company branch location or, at times, outside of said location. I EMPLOYEE shall devote as much time as the EMPLOYEE determines is necessary in fulfillment of his or her duties to the COMPANY. EMPLOYEE shall perform faithfully the duties to the best of his or her ability and in the best interests of COMPANY. EMPLOYEE shall comply with all of rules and regulations of the state. EMPLOYEE's employment shall at all times be governed by the COMPANY'S employment policies, practices and procedures applicable to outside commission sale employees. EMPLOYEE shall comply with AFN s Anti-Money Laundering Policy (the Policy ) which has been implemented in accordance with the Bank Secrecy Act and other related policies and underlying laws and regulations. AFN requires that its own organization, its employees and its third party vendors comply with all requirements of the Policy, the Bank Secrecy Act, Anti-money Laundering regulations and Suspicious Activity Reporting requirements as they exist and apply specifically to Non-bank Residential Mortgage Lenders or Originators (RMLO), or from time to time may be amended. EMPLOYEE represents to AFN that EMPLOYEE is fully familiar with the Policy and the underlying laws and regulations and understands that AFN is relying on such representation of EMPLOYEE in agreeing to employ EMPLOYEE. ARTICLE VIII - COMMISSION PLAN I. EMPLOYEE acknowledges and agrees that COMPANY may at its sole and unfettered discretion modify the Compensation Plan at any time in the COMPANY's sole and absolute discretion. ARTICLE IX - EARNING COMMISSIONS, REDUCTIONS, AND PAYMENT I. All commissions shall be deemed earned and payable to EMPLOYEE upon satisfaction of each of the following conditions: a. EMPLOYEE has fully performed and complied with all of the items set forth herein; and b. EMPLOYEE is the sole procuring cause of the loan; and c. Either (1) the procured loan is funded directly by the COMPANY; or (2) COMPANY actually receives from a lender other than the COMPANY compensation for a loan placed with the lender. COMPANY shall reduce any commission by the amount of any related charges. These charges shall include, but not be limited to, appraisal fees, credit report fees, messenger fees and processing fees incurred by the COMPANY to fund the loan. Page 3 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

4 I Earned commissions, subject to any applicable deductions, shall be paid no later than 30 days after the commission is earned. EMPLOYEE shall not have a right to any commissions whatsoever in the event employment is terminated for cause, pursuant to Paragraph XV ARTICLE X - DETERMINATION OF COMMISSION ELIGIBILITY I. EMPLOYEE must complete all of the following steps to be compensated for funded loans: a. Interview the customer; b. Prepare a loan application, which is fully executed; c. Pre-qualify the customer in accordance with the COMPANY and the lender's standards; d. Meet the COMPANY'S Quality of Service criteria; e. Meet the COMPANY'S established Compliance Requirements; f. Abide by the COMPANY's codes of conduct, and Federal, state, and local law and regulation, such as RESPA and those standards set by the Federal Department of Housing and Urban Development, the state licensing agency or agencies, as each may be modified from time to time. ARTICLE XI - EXPENSES AND TAXES I. EMPLOYEE shall pay all costs or expenses that he or she incurs in generating loans under this Agreement, including but not limited to messenger, automobile, insurance, travel, parking, entertainment, and promotional incentives. I EMPLOYEE shall not receive any reimbursement from COMPANY for business or other expenses. EMPLOYEE shall not incur nor pay any expenses if they are not permitted under State or Federal laws or regulations, including but not limited to the Internal Revenue Code, the Real Estate Settlement Procedures Act ("RESPA"), the state financial regulations, or the Real Estate Law of the respective States in which EMPLOYEE holds an endorsement. The COMPANY shall deduct from EMPLOYEE's compensation any and all applicable payroll taxes, or any amount permitted under COMPANY'S employee benefit plans or payroll practices for employees in the EMPLOYEE'S category. ARTICLE XII - LICENSING & RENEWAL I. EMPLOYEE shall complete all educational requirements for proper licensing, at his/her expense, as a prerequisite to the issuance or renewal of his/her real estate or mortgage license based on the respective information from the state regulatory agency according to Addendum B. Furthermore, if EMPLOYEE for compensation or other monetary gain arranges, negotiates, or otherwise obtains an extension of consumer credit for another person, employee shall annually complete all educational courses, apply for all exams, renewals, and prerequisites for the issuance and maintenance of a unique identifier from the Nationwide Mortgage Licensing System. ARTICLE XIII - LIABILITY I. EMPLOYEE shall indemnify and hold the COMPANY harmless from and against any fines, expenses, loss, claim or liability to any third party (including reasonable attorneys fees and costs) arising out of or the result of (in whole or part) (i) the EMPLOYEE'S breach of this Agreement, (ii) EMPLOYEE'S acts that are not within the course and scope of employment; (iii) EMPLOYEE'S dishonest or willful act; or (iv) EMPLOYEE'S gross negligence. The COMPANY shall not be obligated to the EMPLOYEE or any third party for any expenses incurred or authorized by the EMPLOYEE without the prior, explicit, written consent of the COMPANY's Executive President or Chief Operating Officer. EMPLOYEE shall not have authority to bind COMPANY by any promise or representation, unless specifically authorized by the COMPANY's Executive Vice President or President in advance and in writing to do so. Page 4 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

5 I COMPANY shall be entitled to deduct from any commissions, incentives, or other compensation owed to EMPLOYEE for the purpose of satisfying all liabilities and financial obligations EMPLOYEE may have to COMPANY. ARTICLE XIV - EMPLOYEE BENEFITS/EXCLUSIVITY/WAIVER OF BENEFITS I. EMPLOYEE and COMPANY hereby acknowledge and agree that this Agreement does not create or constitute an agency, joint venture, partnership, shareholder or any other relationship other than an employment relationship between EMPLOYEE and COMPANY. I EMPLOYEE shall not have the right to legally bind the COMPANY in any way. EMPLOYEE acknowledges that he/she works primarily away from the COMPANY S location; however, full-time employees are expected to work 40 hours per week. EMPLOYEE'S only remuneration shall be his/her Commissions earned pursuant to this Agreement. Because EMPLOYEE is an outside, commissioned sales person, EMPLOYEE shall have no rights to the benefits of a salaried or hourly employee, including without limitation vacations, paid holidays, sick leave, sick pay, overtime pay, or participation in any other employee benefit plan or similar pay practice. V. EMPLOYEE agrees that during the term of employment, which EMPLOYEE will exclusively utilize the COMPANY S resources and systems for all loans generated and will abstain from referring any loans to other competitors of COMPANY. VI. V WAIVER. By initialing this section, EMPLOYEE acknowledges that, as an outside sales employee that he/she is not eligible to participate in employee welfare benefit plans and employee benefit practices and programs offered to salaried and hourly employees. EMPLOYEE waives any and all rights that he/she may now have or may ever have to the benefits of regular employees. The benefits waived include, but are not limited to: vacation pay, paid holidays, sick pay, sick leave, and other employee benefit plans. L.O. will be responsible for all local, state, and federal tax reporting and payments. L.O. may or may not be eligible for AFN employee benefits. EMPLOYEE: [By signing here, EMPLOYEE acknowledges that he/she is not eligible for certain benefits and voluntarily waives rights to benefits.] ARTICLE XV - COMPANY'S PROPRIETARY RIGHTS I. EMPLOYEE shall not, during the term of this Agreement or after the termination or expiration of this Agreement, or after the termination of employment, for any reason, use or divulge, except in performance of services under this Agreement, any Company Proprietary Information. For purposes of this Agreement, Company Proprietary Information shall mean any information relating to the business of COMPANY that has not previously been publicly released by duly authorized officers of the COMPANY, and shall include (but shall not be limited to): (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Information contained in any loan package whether completed or not; Customer lists; Lender lists; All sales plans, programs, materials, and brochures; All Company manuals; All training, marketing, and sales materials; Company financial information; Pricing information; Computer programs (including source code, object code, algorithms and models); Customer information; Page 5 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

6 (xi) (xii) (xiii) Any information that would be considered a Trade Secret as that phrase is defined by applicable State law; All methods, concepts, know-how or ideas reasonably related to the business of COMPANY; and Confidential information belonging to COMPANY s customers or clients. I EMPLOYEE agrees to regard and preserve as confidential, all Company Proprietary Information, whether EMPLOYEE has such information in memory or in writing or other physical form. In EMPLOYEE S performance hereunder, EMPLOYEE shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm, or corporation. V. EMPLOYEE expressly agrees that the covenants set forth in this Article are being given to COMPANY in connection with the engagement of the EMPLOYEE by COMPANY and that such covenants are intended to protect COMPANY against the misuse of proprietary information by EMPLOYEE, within the terms stated, to the fullest extent deemed reasonable and permitted in law and equity. In the event that these limitations upon the conduct of the EMPLOYEE are beyond those permitted by law, such limitations, both as to time and geographical area, shall be reduced in scope and effect to the maximum extent permitted by law. VI. V EMPLOYEE acknowledges that the injury to COMPANY resulting from any violation by it of any of the covenants contained in this Article will be of such a character that it cannot be adequately compensated by money damages, and accordingly, COMPANY may, in addition to pursuing its other remedies, obtain an injunction from any court having jurisdiction of the matter restraining any such violation, and no bond or other security shall be required in connection with such injunction. EMPLOYEE shall be liable for COMPANY s attorney in such case. It is agreed that all records of accounts of customers, AFN, whether prepared by L.O. or otherwise coming into his/her possession, shall be the exclusive property of AFN. All such records and any equipment assigned to L.O. shall be immediately returned to AFN upon termination of this contract. ARTICLE XVI - NON SOLICITATION I. EMPLOYEE agrees that he or she shall not, for himself or herself, or on behalf of any other person, firm, or entity or in connection with any other person, firm, or entity, approach, counsel, or attempt to induce any past, present, or future employee, independent contractor or agent to leave or terminate his, her, or its relationship with the COMPANY for a period of one (1) year from expiration of the Term of this Agreement, termination of his/her employment, or from the end of any other relationship with COMPANY, whichever time period is longer. EMPLOYEE specifically agrees that any interference with COMPANY's business by way of soliciting any current or future employee, independent contractor or agent is a tortuous interference with the business of COMPANY. ARTICLE XVII - TERMINATION I. Termination. COMPANY, in its sole discretion, may immediately terminate the employment of EMPLOYEE for the following reasons: a. EMPLOYEE defaults on any of the terms or conditions set forth in this Agreement; b. EMPLOYEE becomes more than thirty (30) days delinquent on any payments due to COMPANY, including without limitation expense related charges; c. EMPLOYEE commits a fraudulent act, including but not limited to intentionally misrepresenting or misleading COMPANY and/or its subsidiaries, affiliates or lender(s), as to the authenticity of a loan application package; d. EMPLOYEE engages in any dishonest act, or COMPANY determines that EMPLOYEE has caused a loss to COMPANY through a willful act or his or hers gross negligence. e. EMPLOYEE does not prove to COMPANY's complete satisfaction that he/she has current licensing under the Nationwide Mortgage Licensing System (NMLS) and Registration, and either state regulatory agency changed to COMPANY. Page 6 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

7 ARTICLE XVIII - NOTICE I. All notices or demands shall be in writing and delivered either a) by personal delivery, or b) by certified U.S. mail, postage prepaid, or c) by facsimile. All notices or demands shall be deemed conclusively received upon the earlier of a) actual receipt by the party to whom such delivery is intended or b) forty-eight (48) hours after such notice or demand is either mailed of sent by facsimile to the party to whom it is intended. ARTICLE XIX - OTHER PROVISIONS I. WAIVER: A waiver by any party of any term and condition of this Agreement shall not be deemed or construed to be a waiver of such term or condition for the future, or of any subsequent breach thereof, nor shall any custom or practice which may arise between the parties be construed to waive or to lessen the right of either party to insist upon strict performance in accordance with all provisions of this Agreement. I TRANSFERABILITY: COMPANY reserves the right to assign, pledge, hypothecate or transfer this Agreement, any interests herein or arising herefrom. CONSTRUCTION: This Agreement shall be governed by and construed in accordance with the laws of the State of California. In all matters of interpretation, each gender shall include the other, the singular shall include the plural, and the plural shall include the singular. The titles of the paragraphs of this Agreement are for convenience only and shall not affect the interpretation of this Agreement. This Agreement shall not be construed for or against any party based on the fact that one party, or their representatives took responsibility for the drafting hereof. All remedies, rights, undertakings, obligations and agreements contained in this Agreement shall be cumulative and none of them shall be in limitation of any other remedy, right, undertaking, obligation or agreement of any party. SEVERABILITY: If any clause or provision of this Agreement is illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, then and, in that event, the remainder of this Agreement shall not be affected thereby, and in lieu of each clause or provision of this Agreement that is illegal, invalid or unenforceable, there shall be added a clause or provision as similar in terms and in amount to such illegal, invalid or unenforceable clause or provision as may be possible and be legal, valid and enforceable. V. ENTIRE UNDERSTANDING: This Agreement contains the entire understanding of the parties relating to the subject matter contained herein and supersedes all prior and collateral agreements, understandings, statements and negotiations of the parties, whether written or oral. Each party acknowledges that no representations, inducements, promises, or agreements with reference to the subject matter hereof have been made other than as expressly set forth herein. This Agreement cannot be changed, rescinded or terminated orally. VI. V LOCKS/COMMITMENTS: AFN will have final approval over the selection of the lender, commitment to deliver, interest rate/price lock, and any written correspondence to the lender for each loan. The L.O. may suggest the lender of choice. The L.O. will share equal to the percentage specified in the applicable Addendum, in any marketing loss or gain which AFN will pay or receive, respectively, as a result of an expired or undelivered loan commitment. FIRST RIGHT OF REFUSAL: AFN reserves the right to have first choice to fund all loans originated under the company. If AFN is unwilling or unable to fund a loan in-house, prior approval may be given to broker the loan to a wholesale company. If a loan is brokered and funded by another lender without the prior, written consent of the company, AFN will collect additional fees, as set forth in Addendum A. Page 7 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

8 THE PARTIES TO THIS AGREEMENT REPRESENT AND WARRANT THAT THEY HAVE FULLY READ AND UNDERSTAND THE TERMS OF THIS AGREEMENT. THEY FURTHER REPRESENT AND WARRANT THAT THEY HAVE CONSULTED WITH THEIR RESPECTIVE REPRESENTATIVES FOR ANY PROFESSIONAL ADVICE NECESSARY TO UNDERSTAND THE TERMS AND CONDITIONS CONTAINED HEREIN. BY SIGNING IN THE SPACES BELOW, THE PARTIES INTEND TO BE LEGALLY BOUND. Branch Manager: Regional Manager: Executive of American Financial Network, Inc.: Page 8 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

9 LOAN ORIGINATORS COMPENSATION PLAN LENDER-PAID COMPENSATION PLAN SELECTION ADDENDUM A FOR COMPENSATION Effective, 20 This Addendum is incorporated into the Employment Agreement between AFN and Employee with an effective date input above. The employee shall be paid consistent commission across all residential 1-4 unit loan types based on an established percentage of the principal loan amount. I. will receive the following established percentage of the principal loan amount on all loans originated and funded (commissions): Basis Points A basis point (often denoted as bp or bps) is equal to 1/100th of a percentage point (e.g. 1.25% = 125 bps) of the loan amount. I All loans not covered by the new compensation rule shall receive percentage of the income derived, including all points and fee income. Incidental fees for items such as appraisals, credit reports, homeowner s certifications, messengers, etc. are to be sent through the SettlementOne Portal as AFN does NOT operate a trust account. All fees collected from the borrower shall be either at the time of the loan application or funding. Any incidental fees collected in excess of the actual costs incurred will be refunded to the borrower. Processing in-house or contract processing, if not collected, will be deducted from branch profits. This fee is currently: $ BONUS STRUCTURE. 1 VOLUME BONUS PLAN: Example: 5 bps bonus at $1 Million 2 VOLUME BONUS PLAN: Example: 7 bps bonus at $2 Million 3 VOLUME BONUS PLAN: Example: 9 bps bonus at 10+ loans V. COST STRUCTURE. ( allows compensation to vary for a legitimate business expense) ALLOWABLE BASIS POINT COST ADJUSTMENTS - MONTHLY 1 FIXED OVERHEAD COSTS Ex: (5 bps) for technology 2 MARKETING COSTS Ex: (40 bps) when given lead 3 LOCK EXTENSIONS Ex. (15 bps) across the board 4 OTHER COSTS Ex: (100 bps) broker fee 5 OTHER COSTS Ex. (Any legitimate cost) Page 9 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)

10 VI. V AFN requires preapproval by John Sherman, COO for all brokered loans on a case-by-case basis. ADDITIONAL NOTES: Branch Manager: Regional Manager: Executive of American Financial Network, Inc.: DISCLAIMER: AFN reserves the right to change the compensation plan at anytime. NOTABLES: 1) The bonus structure must reflect bona fide compensation. For example, the Basis points under section #1 may add 15 bps for 10+ loans or may add 10 basis points for $2,000,000 or more in volume. 2) When AFN saves money based on a legitimate marketing expense because the loan file is a bona fide lead generate by AFN, a cost may be fixed to the compensation. For example, loan A is a lead by the company and loan B is self-generated. AFN could subtract 40 basis points from an originator on loan A, reflecting the cost of the lead. This exception is allowed as a legitimate overhead cost for the branch. 3) All compensation plans must be on file with AFN s HR director and kept for a minimum of 2 years by AFN and the Branch 4) AFN will review compensation plans to verify all basis points reflect legitimate compensation or costs. Page 10 Rev. 10/14/2013 American Financial Network, Inc. Initial (Employee)